April 2008

    
   
   

WHERE COMMUNICATIONS INFLUENCE DECISIONS
   

The Point:
 

Tax Time Needn’t Be So Taxing:

    
 

Straightforward language in the tax code could make it much easier to figure out what you owe.

It’s bad enough we have to pay taxes, do we really have to put up with the gobbledygook? This might be wishful thinking when it comes to tax forms, but wouldn’t it be nice if the IRS spoke in plain language, in sentences you and I understand? Here are just two examples taken from this year’s 1040:

 

So can you file jointly or not?

 

Why not just say...

You can file jointly if:

  • You were married at the end of 2007. (If your spouse died in 2008, or you were divorced in 2008, you can still file a joint return for 2007, as long as you were married at the end of that year.)

or

  • You were married for some portion of 2007, your spouse died during the year, and you did not remarry in 2007.

And did your dividends qualify?

 

Uh, what? How about explaining dividends like this:

Exceptions include dividends you received on stock you owned for 60 days or less during a specific 121-day period. This period includes the 60 days before and after the ex-dividend date. (This is the date before which you must buy stock to be eligible to receive a declared dividend.)

If you owned the stock for 60 days or less during this period and received a dividend, you must report it as ordinary income, not a qualified dividend.

Barbara Sullivan and Maria Boos are available to share insights on how to clarify complex communications.

Barbara Sullivan
Managing Partner

Maria Boos
Practice Lead,
Functional Communications